Interested in an Orlando investment property? It is not rocket science. Actually, Central Florida real estate investing continues to offer high return on investment (ROI) for property owners. But like anything else, it helps to have experts in your corner to guide you to the best deals. Read on if you’re considering adding Orlando area investment property to your portfolio.
Why Orlando?
Orlando has a history of being a strong area to own investment property. With a combination of business and population growth, the demand for rental property looks to grow as well.
The results of a 2019 10-year forecast by the Orlando Economic Partnership provided data on just how strong that growth might be.
Projections expected jobs to grow by 19%, driven by home and healthcare services, the fastest growing industry. Yet many other industries were projected to outpace the national average as well.
At the time this study was released, 1,500 people were migrating to Central Florida a week. If anything COVID intensified the migration to central Florida, which remains one of the top migration destinations in the nation.
People aren’t just coming for the great weather. In July 2023, CNBC ranked Florida as the top state for economic growth. That growth provides great working opportunities, which in turn provides a greater demand for housing.
The Realty Medics’ January 2024 market recap shows this growth has gained steam.
Short-Term vs. Long-Term Rentals
Many rental home owners first got into real estate investing with short-term rentals (typically fewer than 30 days). After all, the area is known for a few tourist destinations. 😉
Owners saw they could charge a much larger nightly rate for their homes as short-term rentals to visitors. That quickly skyrocketed the ROI of a rental home close to beaches and world-renowned amusement parks.
But as many landlords are finding, short-term rentals come with a lot more turnover management, cost, and risk factors. To ensure a continued ROI, owners of short-term rental properties have to keep those rentals filled. That can prove challenging during off seasons when fewer tourists flock to the area (like when the kids go back to school for the fall).
With increasing demand for longer-term rental homes for the influx of people coming for work opportunities (see above), even if you’ve been running a short-term rental property for years, it may make more sense to convert it to a long-term one.
A lot of investors have decided that even though the nightly rate is much lower for a one-year long-term lease, the steady income and decrease of hands-on property management makes long-term renting a better choice for them.
The Right Realtor for Your Orlando Investment Property
You may not have thought about this before, but just having the right Realtor can help you begin your Central Florida real estate investing journey.
This isn’t just someone who knows the neighborhoods, but also understands the rental property market. They’re not going to steer you toward a higher end home with a steep sale listing where you’d never get the ROI back in rent for it to make sense to add to your portfolio.
And while there continues to be a tight market for existing houses, another potential avenue is to invest in new builds. Our in-house specialists can share information on the next phases of new builds in the area and provide ROI data on investors from earlier phases of builds.
Get Advice from The Pros
The Realty Medics is the highest rated and most reviewed Orlando Property Management company in Central Florida. We’re also a full service licensed real estate brokerage company, covering the Central Florida area.
If you’re looking for investment property in Orlando and Central Florida, get advice from the pros. Call us at 321-947-7653 or fill out our online form to learn more.
